The City of Matlosana Local Municipality in North West, South Africa, is home to approximately 430,000 people and encompasses several towns, including Klerksdorp, Jouberton, and Stilfontein. Decades of mine closures have compounded years of municipal mismanagement, leaving the once-booming gold-mining area as a distressed municipality placed under administration. Residents have reported unreliable water and electricity supplies, as well as common sewage spills. The municipality's infrastructure has deteriorated significantly, with many residents expressing frustration over the lack of maintenance and inadequate service delivery.
Residents of the township of Kanana have expressed concerns over sanitation, citing the local pump station's failure to operate for years. Raw sewage has spilled into the Skoonspruit River, a tributary of the Vaal, causing environmental and health concerns. In Klerksdorp, the administrative and economic center of the municipality, residents have reported inconsistent water and electricity supplies, as well as deteriorating infrastructure. Gerard Horn, a long-time resident of central Klerksdorp, described municipal services as "collapsing" and expressed frustration over the lack of maintenance.
Ward 39 councillor Inge Wilken has also raised concerns over the municipality's service delivery, stating that complaints are often ignored and repairs are done shoddily. She noted that live electrical wires run across streets, posing a risk to children. The Auditor-General has flagged estimated billing for utilities in Matlosana, and the municipality has been criticized for its poor financial management. The National Treasury temporarily withheld R299-million of Matlosana's July 2026 equitable share allocation due to its failure to investigate and take action on unauthorized expenditure.
The municipality is currently operating under a mandatory Section 139 Financial Recovery Plan, overseen by Moatlhodi Dilotsotlhe. Mayor Fikile Mahlophe has stated that funds from the Treasury have been released after the municipality demonstrated progress on disciplinary boards and creditor payments. However, the Auditor-General's recent qualified audit opinion found that 85% of the allocated budget had been spent, but the City achieved only 58% of its basic service and infrastructure targets.
The municipality's financial struggles have been exacerbated by its high debt levels, including R2.8-billion owed to the Midvaal Water Company and R1.92-billion owed to Eskom. Electricity losses stand at 44%, and water losses are at 57%. The municipality has spent tens of millions of rand on external financial consultants, but residents continue to experience water shortages and inadequate service delivery.
The Auditor-General has served the City with four material irregularity notifications involving financial losses, public harm, and systemic non-compliance. Cases involving potential fraud, corruption, and supply chain management failures have been referred to the Public Protector and the Hawks. The municipality has conceded that service delivery has been inadequate, posing health risks and impeding economic growth.
The municipality's political instability has also contributed to its struggles, with the chief financial officer being formally dismissed after a prolonged disciplinary hearing. The municipality's governance failures have eroded oversight mechanisms, and cooperative governance minister Velenkosini Hlabisa has noted that factional battles and alleged corruption have contributed to the municipality's decline.
Key points
- The City of Matlosana Local Municipality is under a financial recovery plan due to years of mismanagement and infrastructure decay.
- Residents face unreliable water and electricity supplies, as well as common sewage spills.
- The municipality's debt levels are high, with R2.8-billion owed to the Midvaal Water Company and R1.92-billion owed to Eskom.
